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DogeCoin Continues to Garner Support From Crypto Whales

Mark Cuban has coined DOGE as cheap, stating that the “imperfections and simplicity” make up a decent investment thesis.

High Profile Fans

Dogecoin continues to perform well having climbed 57.2% over the past 14 days, and 74.5% over the 30 day period. 

This has prompted a number of well known crypto users to comment on its recent success.

“There appears to be a coordinated movement by the elite to pump $doge and I will not get in their way.” stated Crypto Dog on Twitter, August 15th

The pseudonymous canine may have been referring to an earlier post from billionaire entrepreneur Mark Cuban, who lauded the Shiba Inu coin.

DOGE has performed well over the past month (Source: CoinGecko)

“Cheap” DOGE

“The point about DOGE that people miss is that DOGE's imperfections and simplicity are it's [sic] greatest strengths,” said Cuban, “You can only use it to do 2 things: Spend It or HODL It. Both are easy to understand. And it's cheap to buy. Which makes it a community anyone can join and enjoy.”

Since Cuban made the post on his Twitter account DOGE has broken through the $0.3 price resistance level. DOGE was already on an upward trajectory however, so it is unclear exactly what effect Cuban’s statement may have had.

Nor is it exactly clear what Cuban meant when he said that the coins are “cheap to buy”. One user, ChainLinkGod offered an alternative perspective. “DOGE isn't cheap (marketcap is $40B and rank #7), it just plays into low unit bias,” he said.

At the end of the day token price does not have any effect on value. Users often mistake a low priced coin with a low value (unit bias), which is not the case. This is because tokens like DOGE have tons of tokens in circulation, resulting in a large market cap (Supply x Price).

Which Is Heavier - a Ton of Bricks or a Ton of Feathers?

Three friends - Alice, Bob and Eve - are looking to invest in cryptocurrency. Each has $1,000. 

Alice is good friends with Mark Cuban so she spends her $1,000 on Dogecoin and receives 3,125 DOGE. Bob spends $1,000 on bitcoin and receives only 0.0218312 BTC in return. Eve spends her $1,000 on Ethereum and now owns 0.314040762490971 ETH. They each complete their transaction at the same time.
Alice is very happy with her purchase as she now has lots of DOGE. Eve is disappointed to only have one third of an Ethereum, while Bob feels cheated with a measly 0.021 BTC. 

Alice explains to Bob that he should swap his bitcoin for Bitcoin Cash or Bitcoin Satoshi’s Vision, as they are cheaper and you get many more tokens for the same money. On the same basis Eve swaps her Ethereum to Ethereum classic. Both now have lots more tokens, but how much better off are they?

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